GQG Partners Inc (ASX: GQG) shares have sunk 7.59% in morning trade on Wednesday. At the time of writing, the ASX 200 financials stock is trading at $1.765 per share.
Today's dip means the share price is now 16.35% lower than this time last year and 0.3% higher for the year to date.
For context, the S&P/ASX 200 Index (ASX: XJO) is up 0.55% this morning, and the S&P/ASX 200 Financials Index (ASX: XFJ) is up 1.04%.
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Why is this ASX 200 financials stock crashing?
GQG Partners posted its latest funds under management (FUM) update ahead of the ASX open this morning. The fund manager reported a total FUM of US$172.9 billion for February, up from US$165.7 billion in January, thanks to strong investment performance.
International and Global strategies led the growth. Its International FUM increased by US$4 billion, and Global grew by US$2 billion throughout the month, after accounting for flows and performance. The reported figures are unaudited and based on current estimates. The FUM data does not include activity from GQG Private Capital Solutions.
The ASX 200 financial stock also noted a net outflow of US$3.2 billion for the month. This is down from a net outflow of US$4.2 billion in January but higher than the US$2.1 billion net outflow reported in December.
GQG confirmed that its next FUM updates are scheduled for the 13th of April, 12th of May, and 10th of June 2026. Management remains focused on delivering strong long-term returns for clients and managing net flows during challenging market conditions.
If GQG Partners' FUM is rising, why are investors selling up?
In short, investors are likely concerned about the company's net outflows. While the total FUM increased during February, GQG continues to face consecutive months of net outflows. Throughout 2025, the fund manager saw a total of US$3.9 billion leave its funds. That outflow figure has already been overtaken in the first two months of 2026.
As a fund manager, QGQ Partners' revenue is heavily dependent on how much money its clients invest, and investors are likely concerned that continued outflows may mean the company's earnings could begin to fall.
What do analysts think of the financials stock?
The company posted strong FY25 earnings results in mid-February, which helped bump the share price higher late last month.
The numbers themselves were solid. Revenue and net income both rose year on year, while operating margins expanded to 77%. Funds under management ended the year at US$163.9 billion, up 7.1%, despite US$3.9 billion in net outflows. GQG Partners' net outflows were US$20.2 billion in 2024.
The company is well diversified across strategies and geographies, with exposure across international, emerging markets, global, and US equities.
Analysts are mostly neutral on the outlook for GQG Partners' shares over the next 12 months. TradingView data shows that six out of 10 analysts have a hold rating on the ASX financials stock, and another four have a buy or strong buy rating.
The average target price is $1.965, which implies a 9.96% upside at the time of writing.
